How to Create Variable Pay Earning Pay Heads in Tally Prime?
Step: GOT > Create > Pay Heads > Enter
Ø After reaching by follow above step, fill all details to create variable Pay Heads like,
· Name–Enter the name of Earning Pay Heads. like I Enter “Variable Pay”
· Pay head type – In this section different type of Pay heads are listed. Select “Variable Pay” from list to create Earning Pay heads.
· Income type – These are two type of Income gain by employee first fixed and second Variable.
§ Fixed – If your employee’s overtime is fixed in every month then use this income type. Like overtime of employee is fixed for a particular period.
§ Variable – If your employee’s Overtime is vary or changes in every month then use this income type
v I select “variable” from both of them income type because Variable Pay is
· Under – Select “Indirect Expense” because Variable Pay is indirect expense for
· Affect Net Salary – Set to this option “Yes” because Variable Pay Affect net Salary.
· Name to be displayed in payslip – Left it by Default name “Bonus” to Print in Pay Slip.
· Use for Calculation of Gratuity – Set to this option “No” because Gratuity calculated
only on the basis of (Basic Salary + dearness allowance).
· Set/Alter Income tax details – Set to this option “Yes” for income tax deduction from employee’s Variable Pay.
Ø After income tax details set to “Yes” a new window appear in front of you.
Ø In this window select the appropriate option like,
§ Income tax Component – Select required tax component for Deduct tax
from Variable Pay. Like I select “other Earning/Allowance (Fully Taxable)”.
§ Tax Calculation Basis – in this section two option are available :
On Projected Value – If Variable Pay of employee will not change according to months or Year then select this option.
On Actual Value – If Variable Pay of Employee will change according to months or year then select this option.
Ø I select “On Actual Value”
§ Deduct TDS across periods – Set to this option “Yes” because Variable Pay is
Ø Fill details in Income tax details like following screenshot:
· Calculation Type – Select “As User Defined Value” from list for Variable Pay because it is
decided Employer that how much he Paid Variable Pay Amount to Employee.
Fill all Above details in Pay heads screen to create Variable Pay Earning Pay heads like following screenshot:
· Press Enter or Ctrl+A to save this screen.
Part 2: Create Deduction Pay heads
Deduction Pay Heads – All amount given by Employer to his employees as Loan or Advance for them. Like Advance Salary, Canteen Expense, etc.
a) Advance Salary Deduction Pay Heads